Recently, a report was published containing data indicating that more than 80% of the cryptocurrencies that were newly listed on the Binance platform, the largest digital currency trading platform in the world in terms of trading volume, have witnessed a decline in their value over the past months.
Over the past six months, the value of most of these cryptocurrencies has declined after being listed on the Binance platform, raising concerns among investors looking for opportunities in new digital currencies.
Performance of new digital currencies:
According to a report issued yesterday, May 17, by a cryptocurrency researcher known as “Flow,” only five out of 31 digital currencies analyzed have seen an increase in their value.
These five cryptocurrencies that made the exception include:
meme coin (MEME), Ordi coin (ORDI), Solana based Jupiter coin (JUP), Jito coin (JTO), and Dogwifhat (WIF).
Despite the absence of venture capital (VC) support, Ordi has performed most profitably, with the value of the coin increasing by more than 261% since its launch.
Dogwifhat coin came in second place with an increase of more than 117%.
Impact of capital support and market valuations:
Analyst Flow noted that many of the newly listed cryptocurrencies on Binance are backed by venture capital and launched at inflated valuations.
Some of those in charge of these projects take advantage of the Binance platform and the retail investor audience to sell while not continuing with the same seriousness and development before the listing process.
Flow also criticized the current market dynamics, citing observations of economist Alex Krueger, where according to the latter, many cryptocurrencies are designed to quickly increase their value and then deflate due to short vesting schedules, fake metrics and a focus on hype rather than real user acquisition.
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